UQM UQM Technologies Inc

FREDERICK, Colo., May 17 /PRNewswire-FirstCall/ -- UQM TECHNOLOGIES, INC. (AMEX:UQM), a developer of alternative energy technologies, announced today operating results for the quarter and fiscal year ended March 31, 2007. Continuing operations for the fourth quarter resulted in a loss of $958,655 or $0.04 per common share on total revenue of $2,011,118 versus a loss from continuing operations of $957,468 or $0.04 per common share on total revenue of $1,141,205 for the fourth quarter last year. Net loss for the quarter was $964,972 or $0.04 per common share versus a net loss of $959,393 or $0.04 per common share for the comparable quarter last year. Continuing operations for the fiscal year ended March 31, 2007 resulted in a loss of $3,402,566 or $0.14 per common share on total revenue of $6,653,194 versus a loss from continuing operations of $2,757,386 or $0.11 per common share on total revenue of $4,322,566 last fiscal year. Net loss for the fiscal year ended March 31, 2007 was $3,431,357 or $0.14 per common share versus a net loss for the previous fiscal year of $2,784,970 or $0.11 per common share. "Fiscal 2007 was an important and exciting year for the company as we ramped up our volume production of electric auxiliary motors for conventional vehicles and launched a new production program for DC-to-DC converters for hybrid electric vehicles. As a result, product sales revenue for the year more than doubled to $3.7 million versus $1.8 million last fiscal year. Contract services revenue and low volume product sales showed significant growth increasing 16 percent and 17 percent, respectively, versus last fiscal year. The increase in low volume product sales was fueled principally by shipments of generators and motor controllers to Denver's Regional Transportation District as part of the continued retro-fitting of their hybrid-electric bus fleet. At April 30, 2007 our product backlog stood at $16.5 million compared to $2.2 million at April 30, 2006 due to orders for the above products and the recently announced $9.25 million production order from Phoenix Motorcars, Inc. for electric propulsion systems and DC-to-DC converters for their all-electric Sport Utility Trucks (SUT)," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "We expect revenue during fiscal 2008 to rise substantially from the fiscal 2007 level and for operating losses to decline driven by improvements in gross profit margins." "Losses from continuing operations for the quarter ended March 31, 2007 were flat on substantially greater revenue due to new share based payment accounting rules which generated additional non-cash expenses for the quarter of $198,699, and higher levels of production engineering expenditures which increased $367,580 to $586,801 versus $219,221 for the comparable quarter last fiscal year. The increase in production engineering expenditures is primarily attributable to increased staffing levels and other production engineering costs associated with the launch of production for Phoenix Motorcars' all-electric SUT. The increase in loss from continuing operations for the fiscal year ended March 31, 2007 is primarily attributable to new share based payment accounting rules which generated additional non-cash expenses of $957,756 and higher levels of production engineering expenses associated with production planning and launch activities which rose 64 percent to $1,286,761 this fiscal year versus $783,579 for last fiscal year. Operating results for last fiscal year do not include any non-cash expenses associated with share based compensation," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer. "In addition to the exciting growth in our product sales, there were a number of other significant events during the fiscal year including: * A $.75 million U.S. Air Force Phase II Small Business Innovation Research contract to develop electric wheel motors for aircraft ground support equipment * An order from Chitron, Inc. for a propulsion system to power a hybrid electric urban bus in China * The delivery of a motor/generator system for a long-haul, class 8 hybrid truck application * Completion of a strategic alliance with Altair Nanotechnologies, Inc. * Receipt of an additional order from Eaton Corporation for compressor motors used in fuel cells * An additional $1 million contract supplement from the U.S. Air Force to continue the development of a silicon carbide electronic motor controller In addition to these important events, shortly after fiscal year end we completed an agreement with Phoenix Motorcars, Inc. to collaborate on the development of a plug-in hybrid electric sport utility truck and we received a substantial order from the Denver Regional Transportation District for generators and motor controllers to retrofit eighteen additional hybrid electric MallShuttle buses. In addition, two major brokerage firms, Merriman Curhan and Ford & Co. and Rodman and Renshaw rolled out analyst coverage on the Company in April. We are looking forward to an even more exciting fiscal 2008," added Mr. Rankin. Separately, the Company announced that it has leased an additional 6,000 square feet of manufacturing space near its existing facility and relocated its vehicle integration group to the new facility. The relocation of vehicle integration activities will make available additional production floorspace at the Company's main facility. The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter and fiscal year ended March 31, 2007. To attend the conference call, please dial 1-866-322-2356 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-416-640-3405. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Time today. To access the playback call 1-866-244-4494 and give replay code 234009. International callers should dial 1-416-915-1028. UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles, under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center, and motor manufacturing operation are located in Frederick, Colorado. For more information on the Company, please visit its worldwide website at http://www.uqm.com/. This Release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this Release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things the development of markets for our products and the adequacy of our cash balances and liquidity to meet future operating needs. Important Risk Factors that could cause actual results to differ from those contained in the forward-looking statements are contained in our Form 10-K filed today, which is available through our website at http://www.uqm.com/ or at http://www.sec.gov/. Consolidated Balance Sheets March 31, 2007 March 31, 2006 Assets Current assets: Cash and cash equivalents $1,952,177 4,076,806 Short-term investments 5,981,828 6,009,394 Accounts receivable 1,434,686 512,409 Accounts receivable from discontinued operations 76,097 -- Costs and estimated earnings in excess of billings on uncompleted contracts 187,913 450,044 Inventories 899,885 467,485 Prepaid expenses and other current assets 279,343 118,439 Total current assets 10,811,929 11,634,577 Property and equipment, at cost: Land 181,580 181,580 Building 2,306,154 2,297,467 Machinery and equipment 3,152,296 2,808,324 5,640,030 5,287,371 Less accumulated depreciation (2,977,305) (2,683,295) Net property and equipment 2,662,725 2,604,076 Patent and trademark costs, net of accumulated amortization of $622,320 and $545,468 482,303 552,382 Other assets 55,650 5,053 Total assets $14,012,607 14,796,088 March 31, 2007 March 31, 2006 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $982,931 534,428 Other current liabilities 344,952 309,097 Current portion of long-term debt 98,760 92,013 Short-term deferred compensation under executive employment agreements 149,325 -- Liabilities and commitments of discontinued operations 13,847 62,004 Billings in excess of costs and estimated earnings on uncompleted contracts 312,537 221,626 Total current liabilities 1,902,352 1,219,168 Long-term debt, less current portion 522,925 621,685 Long-term deferred compensation under executive employment agreements 396,214 210,861 919,139 832,546 Total liabilities 2,821,491 2,051,714 Stockholders' equity: Common stock, $0.01 par value, 50,000,000 shares authorized; 25,176,889 and 24,776,042 shares issued and outstanding 251,769 247,760 Additional paid-in capital 71,376,462 69,293,461 Accumulated deficit (60,437,115) (56,796,847) Total stockholders' equity 11,191,116 12,744,374 Total liabilities and stockholders' equity $14,012,607 14,796,088 Consolidated Statements of Operations Year Ended Year Ended Year Ended March 31, 2007 March 31, 2006 March 31, 2005 Revenue: Contract services $2,907,536 2,502,098 2,281,427 Product sales 3,745,658 1,820,468 2,481,864 6,653,194 4,322,566 4,763,291 Operating costs and expenses: Costs of contract services 2,666,316 2,471,625 2,496,223 Costs of product sales 3,323,577 1,671,206 1,994,540 Research and development 321,160 241,563 171,918 Production engineering 1,286,761 783,579 211,933 Selling, general and administrative 2,855,213 2,191,289 1,686,409 Impairment of long-lived assets 889 2,963 39,748 10,453,916 7,362,225 6,600,771 Loss from continuing operations before other income (expense) (3,800,722) (3,039,659) (1,837,480) Other income (expense): Interest income 445,578 344,751 97,188 Interest expense (47,422) (63,003) (74,005) Other -- 525 (398) 398,156 282,273 22,785 Loss from continuing operations (3,402,566) (2,757,386) (1,814,695) Discontinued operations - loss from operations of discontinued electronic products segment (28,791) (27,584) (54,201) Net loss $(3,431,357) (2,784,970) (1,868,896) Net loss per common share - basic and diluted: Continuing operations $(0.14) (0.11) (0.09) Discontinued operations -- -- -- $(0.14) (0.11) (0.09) Weighted average number of shares of common stock outstanding - basic and diluted 25,116,354 24,283,523 21,024,757 The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the year ended March 31, 2007: Power Technology Products Total Revenue $4,026,255 2,626,939 6,653,194 Interest income $439,460 6,118 445,578 Interest expense $-- (47,422) (47,422) Depreciation and amortization $(244,401) (169,921) (414,322) Impairment of long-lived assets $-- (889) (889) Segment loss from continuing operations $(2,841,516) (561,050) (3,402,566) Assets of continuing operations $10,092,842 3,843,668 13,936,510 Expenditures for long-lived segment assets $(162,690) (241,091) (403,781) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the year ended March 31, 2006: Power Technology Products Total Revenue $3,459,900 862,666 4,322,566 Interest income $333,022 11,729 344,751 Interest expense $-- (63,003) (63,003) Depreciation and amortization $(251,748) (112,320) (364,068) Impairment of long-lived assets $(2,963) -- (2,963) Segment loss from continuing operations $(2,599,906) (157,480) (2,757,386) Assets of continuing operations $12,166,688 2,629,400 14,796,088 Expenditures for long-lived segment assets $(260,790) (196,540) (457,330) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the year ended March 31, 2005: Power Technology Products Total Revenue $3,089,114 1,674,177 4,763,291 Interest income $89,869 7,319 97,188 Interest expense $(2,108) (71,897) (74,005) Depreciation and amortization $(245,735) (109,682) (355,417) Impairment of long-lived assets $(39,748) -- (39,748) Segment earnings (loss) from continuing operations $(1,869,518) 54,823 (1,814,695) Assets of continuing operations $9,967,003 3,192,637 13,159,640 Expenditures for long-lived segment assets $(194,873) (49,434) (244,307) DATASOURCE: UQM Technologies, Inc. CONTACT: John Baldiserra of BPC Financial Marketing, +1-800-368-1217, for UQM Technologies, Inc.; or Donald A. French of UQM Technologies, Inc., +1-303-278-2002 Web site: http://www.uqm.com/

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